nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2012‒09‒09
ten papers chosen by
Yuji Tamura
Australian National University

  1. A Matching Model on the Use of Immigrant Social Networks and Referral Hiring By Monica I. Garcia-Perez
  2. Assimilation through Marriage By Gil S. Epstein; Renana Lindner Pomerantz
  3. Identifying the Motives of Migrant Philanthropy By Matthias Lücke; Toman Omar Mahmoud; Christian Peuker
  4. Why to employ both migrants and natives? A study on task-specific substitutability By Anette Haas; Michael Lucht; Norbert Schanne
  5. Costs and Benefits of Immigration and Multicultural Interaction By Moritz Bonn
  6. When migrants rule: the legacy of mass migration on economic development in the US By Rodríguez-Pose, Andrés; Viola, von Berlepsch
  7. Ethnic Networks and the Location Choice of Migrants in Europe By Nowotny, Klaus; Pennerstorfer, Dieter
  9. Young immigrant children and their educational attainment By Asako Ohinata; Jan C. van Ours
  10. Pourquoi les migrants marocains retournent-ils chez eux ? Qui revient, quand il revient et dans quelles circonstances ? By Jamal BOUOIYOUR; Amal MIFTAH

  1. By: Monica I. Garcia-Perez (Department of Economics, St. Cloud State University)
    Abstract: Using a simple search model, with urn-ball derived matching function, this paper investigates the effect of firm owner’s and coworkers’ nativity on hiring patterns and wages. In the model, social networks reduce search frictions and wages are derived endogenously as a function of the efficiency of the social ties of current employees. As a result, individuals with more efficient connections tend to receive higher wages and lower unemployment rate. However, because this efficiency depends on matching with same-type owners and coworkers, there is also a differential effect among workers’ wages in the same firm. This analysis highlights the potential importance of social connections and social capital for understanding employment opportunities and wage differentials between these groups.
    Keywords: immigration; search models; social networks; wage differential; hiring process.
    JEL: J15 J21 J31 J61 R23
    Date: 2012
  2. By: Gil S. Epstein (Bar-Ilan University, IZA Bonn and CReAM London); Renana Lindner Pomerantz (Bar-Ilan University)
    Abstract: During the last few decades cultural changes have been taking place in many countries due to migration. The degree to which the foreign culture influences the local culture, differs across countries. This paper shows how the willingness of locals and immigrants to intermarry influences the culture and the national identity of the host country. We use a search-theoretic approach to show that, even in situations where migrants and natives prefer to marry within their own community, the search process may lead to intermarriage. The exogamy can take on two forms: either migrants and natives each hold on to their own culture or the immigrants take on the natives' culture. In the first case we will see new cultures developing and the local culture will not survive over time. In the second case the local culture will survive. We show the conditions for assimilation versus no assimilation between the groups.
    Keywords: Assimilation, Migration, Marriage.
    JEL: F22 R23
    Date: 2012–09
  3. By: Matthias Lücke; Toman Omar Mahmoud; Christian Peuker
    Abstract: Donations by migrants to community projects in their home countries (“collective remittances”) help to provide local public goods and may promote economic development. We draw on the literatures on migrant remittances and on philanthropy in general to identify possible motives for collective remittances. We test the empirical relevance of these motives using micro-level data from Eastern Europe. Our results suggest a mix of motives including altruism, exchange, and concern about future membership rights in the community of origin. We also find that communities with a high degree of ethnic fragmentation and a wide dispersion of migrants across destination countries are less likely to receive collective remittances
    Keywords: international migration, development, diaspora, collective remittances, philanthropy
    JEL: F22 F24 H41 O12
    Date: 2012–08
  4. By: Anette Haas (Institut für Arbeitsmarkt- und Berufsforschung (IAB)); Michael Lucht (Institut für Arbeitsmarkt- und Berufsforschung (IAB)); Norbert Schanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB))
    Abstract: This paper analyzes the performance of migrants on the German labor market and its dependence on the tasks performed on their jobs. Recent work suggests quantifying the imperfect substitutability relationship between migrants and natives as a measure for the hurdles migrants have to face. Our theoretical work adopts that migrant shares are very heterogeneous across firms which is hard to reconcile with an aggregate production function. We argue that the ability to integrate migrants may form a competitive advantage for firms. We show in a Melitz-type framework that the output reaction to wage changes varies across firms. Hence, substitution elasticities of an aggregate production function can be quite different from those individual firms are faced with. Finally we estimate elasticities of substitution for different aggregate CES-nested production functions for Germany between 1993 and 2008 using administrative data and taking into account the task approach. We find significant variation in the substitutability between migrants and natives across qualification levels and tasks. We show that especially interactive tasks seem to impose hurdles for migrants on the German labor market.
    Keywords: Heterogeneity, Migrants, Substitution Elasticity, Tasks
    JEL: J15 J24 J31
    Date: 2012–08
  5. By: Moritz Bonn
    Abstract: This paper studies how the existence of a minority culture infl uences the well-being of the native population and its attitude towards immigrants. In this context, I assume that multicultural interaction can be advantageous for immigrants and natives if intercultural obstacles and communication problems are abolished. It is found that certain shares of the immigrant as well as of the native population have incentives to acquire knowledge of the respective other culture since it enables them to interact with each other. I find that immigrants are more likely to acquire knowledge of the domestic culture than vice versa what I attribute to differences in the respective population size, assortative matching behavior and potentially asymmetric learning costs. The model further predicts that natives who have sufficiently low costs of learning the foreign culture are willing to vote for free migration whereas those who have higher learning costs will be in favor of immigration restrictions
    Keywords: Immigration, Cultural Interaction, Political Economy
    JEL: F22 J15 Z1
    Date: 2012
  6. By: Rodríguez-Pose, Andrés; Viola, von Berlepsch
    Abstract: This paper examines the extent to which the distinct settlement pattern of migrants arriving in the US during the big migration waves of the late 19th and early 20th centuries has left a legacy on the economic development of the counties where they settled and whether this legacy can be traced until today. Using data from the 1880, 1900 and 1910 censuses, we first look at the geography of migration across US counties in the 48 continental states. We then link this settlement pattern of migrants to current levels of local development – proxied by GDP per capita at county level in 2005 – while controlling for a number of factors which may have influenced both the location of migrants at the time of migration, as well as for the economic development of the county today. The results of the econometric analysis including instrumental variables underline that the big migration waves have left an indelible trace on territories which determines their economic performance until today. US counties which attracted large numbers of migrants more than a century ago are still more dynamic today than counties that did not. The results also show that the territorial imprint of migration has become more pervasive than all other local characteristics which would have determined and shaped economic performance in the late 19th and early 20th centuries.
    Keywords: counties; culture; economic development; institutions; long-term legacy; migration; US
    JEL: F22 J61 O15 R23
    Date: 2012–09
  7. By: Nowotny, Klaus (University of Salzburg); Pennerstorfer, Dieter (Austrian Institute of Economic Research)
    Abstract: This paper analyzes the role of ethnic networks in the location decision of migrants to the EU at the regional level. Using a random parameters logit specification we find a substantially positive effect of ethnic networks on the location decision of migrants. Furthermore, we find evidence of spatial spillovers in the effect of ethnic networks. Analyzing the trade-off between potential income and network size, we find that migrants would require a sizable compensation for living in a region with a smaller ethnic network, especially when considering regions where only few previous migrants from the same country of origin are located.
    Keywords: network migration; ethnic networks; random parameters logit
    JEL: C35 F22 R23
    Date: 2012–09–03
  8. By: Tiiu Paas; Vivika Halapuu
    Abstract: The paper is aiming to clarify the possible determinants of peoples’ attitudes towards immigrants depending on their personal characteristics as well as attitudes towards households’ socio-economic stability and a country's institutions relying on the data of the European Social Survey fourth round database. The study is intending to provide empirical evidence-based grounds for the development of policy measures to integrate ethnically diverse societies, taking into account the composition of the country's population as well as other country’s peculiarities. The results of the empirical analysis are consistent with several theories explaining individual and collective determinants of people’s attitudes towards immigrants. Ethnic minorities, urban people, people with higher education and higher income, as well as people who have work experience abroad are, as a rule, more tolerant towards immigrants in Europe. Furthermore, people whose attitudes to socio-economic risks are lower and who evaluate the political and legal systems of a country and its police higher (e.g. political trust) are more tolerant towards immigrants. Respondents’ labour market status of (employed, unemployed) does not have a statistically significant relationship with their attitudes towards immigrants. In addition to the respondent’s personal characteristics and their attitudes, the collective determinants depending on country specific conditions measured by country dummies are valid in explaining people’s attitudes towards immigration.
    Keywords: edattitudes, immigration, tolerance, economic growth, policy implications, Baltic States
    JEL: O40 R11 C31 P51
    Date: 2012
  9. By: Asako Ohinata (Department of Economics and CentER, Tilburg University); Jan C. van Ours (Department of Economics, CentER, Tilburg University; University of Melbourne; CESifo; CEPR and IZA)
    Abstract: We analyze the determinants of reading literacy, mathematical skills and science skills of young immigrant children in the Netherlands. We find that these are affected by age at immigration and whether or not one of the parents is native Dutch.
    Keywords: Immigrant children, Educational attainment
    JEL: I21 J15
    Date: 2012–08
  10. By: Jamal BOUOIYOUR; Amal MIFTAH
    Abstract: Pourquoi les migrants marocains retournent-ils chez eux ? Qui revient, quand il revient et dans quelles circonstances ?
    Date: 2012–08

This nep-mig issue is ©2012 by Yuji Tamura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.